May 5, 2023

Pepe coin (PEPE), the new token based on “pepe the frog” meme, has reached a $1 billion market capitalization after it debuted last month. The token has gained 70% over the past 24-hours, reaching an all time high, according to data from CoinGeko. The PEPE rally has spurred increased trading activity in other meme tokens on decentralized exchanges, according to data from IntoTheBlock. For instance, WOJAK and PEEPO have climbed more than 600% in a week. Longer standing meme tokens such as dogecoin and shiba inu have not witnessed the same price movement, both trading in the red on the week.

U.K.'s financial regulator, the Financial Conduct Authority (FCA), continues its crackdown on unlawful crypto ATMs. The FCA said it has inspected sites in Exeter, Nottingham and Sheffield alongside the regional police. The devices for turning fiat currency into crypto are seen as a money laundering threat, and none are logged with the FCA as is required by law, the regulator said in a statement on Friday. “Crypto ATMs operating without FCA registration are illegal,” said Therese Chambers, the FCA’s Executive Director of Enforcement and Market Oversight. “We will act to stop illegal activity.”

Crypto exchange Coinbase reported Q1 revenue of $773 million, exceeding analysts’ estimates of $655 million, according to FactSet, and up from Q4 revenue of $629 million. The company reported an adjusted loss of $0.34 per share, versus estimated loss of  $1.45 per share and a narrowing from Q4’s loss of $2.45 per share. Trading volume came in at $145 billion versus estimates of $147.7 million for the quarter. Trading volume was roughly $146 billion in the fourth quarter. Shares of Coinbase were up about 8% to $53 in after-hours trading Thursday. Shares are up about 40% this year, with bitcoin’s rise of roughly 74% year to date.

Ethereum is becoming costlier to use as the latest meme coin mania has investors churning millions for a frog-themed token called pepecoin (PEPE).

The daily median gas price, or transaction cost, hit a 12-month high of 87 gwei (one gwei is a billionth of an ether) early this week. The value has increased more than 50% since the launch of the PEPE token on April 18, according to pseudonymous analyst @hildobby's Ethereum Gas tracker on Dune Analytics. At one point on Monday, the one-minute median gas price surged well past 150 gwei.

The increase represents strong demand for the Ethereum network, mainly from meme-coin traders, according to analytics firm CoinMetrics.

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